‘US Dollar Dominance Will Not End Tomorrow But The Push Against It Has Begun’
NEW DELHI: Is it end game for the US dollar as the international reserve currency? The International Monetary Fund recently warned that US sanctions on Russia could lead to what it described as “a more fragmented international monetary system with small currency blocks emerging based on trade between separate groups of countries”.
In this conversation on The Gist, Dr. Suranjali Tandon, trade specialist at the National Institute of Public Finance & policy, pointed out that such warnings also flow from charges that the US is “weaponizing the dollar”, using it to punish other countries with which it has political and other disagreements. This has helped countries like China to push for greater adoption of the yuan. It recently held talks with Saudi Arabia for a yuan based oil deal.
Of course the dollar replacement is not going to happen any time soon. There are many doubts about currencies like the yuan that are controlled by the Chinese government.
Tune in for more in this conversation with Dr. Suranjali Tandon.